Memorandum By The Institute of Logistics
And Transport (RH30)
INTRODUCTION
The Institute of Logistics and Transport (ILT) welcomes
the opportunity to make general comment to this Inquiry on the
Road Haulage industry. The Road Haulage industry plays an important
part in the life of the United Kingdom. The safe and effective
operation of road freight is essential for the well-being of the
people, especially as an essential component of the UK economy.
The Institute acknowledges the problems currently
facing the road haulage industry. Yet the industry has succeeded
in remaining largely efficient and competitive, especially considering
the fiscal constraints that are imposed upon it. It is a fact
that some smaller firms in the industry have been driven out of
business, despite the Government's keenness to sustain Small &
Medium Enterprises (SMEs); the loss of drivers' jobs would also
appear to conflict with Government aims of higher employment and
social inclusion.
The industry has fought to overcome the financial
and legislative obstacles placed in its path. There is, however,
scope for improving efficiency. This might be achieved to the
benefit of both the industry and society at large through the
implementation of a number of key (and well documented) measures,
described in the following sections.
FUEL AND
VEHICLE EXCISE
DUTIES
The automatic fuel duty escalator has been responsible
for increasing UK diesel fuel prices to levels substantially in
excess of those applying in most European countries. Similarly,
levels of vehicle excise duty in Europe have been shown to be
significantly below those applicable for comparative vehicles
registered in the UK.
The combined effects of these two duty anomalies
has been three-fold:
(1) It allows competitive foreign-based road
hauliers to enter the UK and operate here under cabotage rules
at haulage rates substantially below those needed to be charged
for similar journeys by UK hauliers;
(2) It has encouraged UK hauliers to find
means (sometimes barely legal) of buying fuel abroad for use in
UK domestic operations. This has included:
— the fitment of extra-large fuel tanks
on vehicles to enable substantial quantities of fuel to be imported;
— sending vehicles over the Channel
at weekends (for which specially reduced ferry rates have been
offered) for the sole purpose of filling diesel tanks for use
in the UK.
(3) It has encouraged some UK road hauliers
to "flag-out" by registering and taxing their vehicles
in near EU countries (eg, Holland and Belgium) to obtain lower
rates of vehicle excise duty.
None of these measures can be in the interests
of the UK economy, especially as they cause the loss of significant
duty revenues. Furthermore they are driving some otherwise law-abiding
operators to the verges of illegal operation in their determination
to overcome what are widely regarded as unfair taxes.
Recommendation:
— The Government should take prompt
and positive action to harmonise fuel and vehicle excise duties
with those applying in our fellow EU Member States, thus providing
the international "level playing field" that is a widely
promoted aim for the Single European Market.
44 TONNE VEHICLE
OPERATION
Greater efficiency for road haulage would obtain
if the general maximum gross weight limit for articulated and
lorry and trailer vehicles was increased from the current 41 tonnes
to 44 tonnes, in line with the maximum limit already permitted
in this country for combined road-rail operations. It is very
difficult to see any general reason for delaying this weight increase,
as vehicles of the size and specification to meet this limit are
already operating on our roads. If they can be allowed for one
type of operation there is no logical reason why they cannot be
allowed for other operations.
The Institute remains concerned about two issues:
(1) The general use of lorries operated at 44
tonnes gross will add to costs incurred largely by local authorities
for highway maintenance and upgrading, especially in the case
of the many bridges which need to be strengthened.
(2) There are cases where potential opportunities
for rail freight development may be significantly weakened. This
is particularly serious at the moment when every reasonable opportunity
should be afforded for the growth of rail freight, especially
in general freight distribution markets.
These are matters which the Government needs
to take a clear line on, probably through investment within a
well defined strategy (as the Institute has urged elsewhere).
However, the slow development of this approach at present should
not hide the overall benefits that would emanate from the proposed
increase in weights to 44 tonnes. Two benefits can be identified:
(2) Greater flexibility and efficiency.
Recommendation:
— The Government should introduce the
necessary legislation forthwith to implement this key efficiency
measure.
ENVIRONMENTALLY FRIENDLY
TRUCKS
Current legislation on exhaust emission standards
ensures that new heavy vehicles entering service are equipped
to produce the minimum possible amounts of harmful air pollution.
However, it should be recognised that vehicles so equipped are
expensive and provide smaller operators with significant additional
costs. Less-polluting vehicles should be made as accessible to
as wide a section of the industry as possible. Existing "reduced
pollution" vehicle excise duty incentives go some way in
this matter, but greater encouragement is needed.
Recommendation:
— The Government should consider further
measures by which operators can be encouraged to dispose of old
"polluting" vehicles in favour of new-type cleaner emission,
"environmentally friendly" vehicles.
ENFORCEMENT
The road haulage industry has long been beset
by a rogue element that cares little for legislative compliance
or the maintenance of essential safety standards. Tougher enforcement,
with more enforcement personnel on the ground and greater powers
to impose penalties required. In particular the ultimate sanction
of impounding illegally operated and unsafe vehicles needs to
be applied.
This needs to be matched by similarly tough
enforcement standards applied to foreign vehicles entering the
country, whether from other EU Member states or elsewhere.
Recommendation:
— The Government should introduce and
implement impounding legislation forthwith. This measure is widely
supported within the industry.
ILLEGAL IMMIGRANTS
The Institute expresses concern about the current
problems with illegal immigrants. Operators risk being faced with
the operational consequences, such as damage to vehicles (particularly
slit side curtains), the fouling of load compartments and the
high risk of threat and physical violence to drivers. In addition,
operators and drivers alike face the prospect of significant penalties
(£2,000 per person) if found with illegal immigrants secreted
in their vehicles.
This is a problem over which individual drivers
and operators have little control and the fairness of such penalties
must be reviewed. This applies to other modes including rail freight.
Recommendation:
— The Government must implement new,
formal measures for checking freight vehicles to support the industry
to deal with the actual issues. It should review the penalty clause
to ensure that only those complicit in the illegal entry are thus
penalised. It should also impress in very clear terms on other
Governments the need for their co-operation in preventing illegal
immigrants from entering vehicles when parked in port areas.
PRIORITY ACCESS
FOR DELIVERY
VEHICLES
The first round of Local Transport Plans in
England and Wales has, almost invariably, seen a significantly
greater emphasis placed on the movement of passengers than on
the movement of goods. The Transport Bill, currently under consultation,
for all its 231 clauses and 26 schedules, places little emphasis
on the importance of road freight transport and the key role played
by delivery vehicles.
Road freight vehicles are often perceived as
a potential source of pollution and danger. However, they usually
form a small proportion of total traffic within towns, even when
light delivery vehicles are included. Reduction in car use is
thus much more likely to meet aims in these fields without the
impact of preventing delivery of goods considered essential to
local trade; this should be clearly reflected in Local Transport
Plans. Without efficient access by delivery vehicles, town and
city centres could potentially grind to a standstill, with a potentially
serious impact on commercial outlets.
Recommendation:
— It is generally accepted that the
efficient operation of passenger transport is a key to getting
people out of their cars and on to public transport, thus reducing
road congestion and environmental pollution. The Government and
the local authorities should review the importance placed on the
strategic role of delivery vehicles within their Local Transport
Plan.
February 2000
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